Factors To Consider Before Buying a Property in Dubai for Expat
Is it worthy to buy a property in Dubai?
In most cases, an investor is looking for a short-term investment, a long-term investment or a place to live, etc. To answer this question, it’s important to acknowledge that Dubai is a safe city & an international business hub for many investors & entrepreneurs, and a favorite destination for all tourists around the world. There are multi-factors that help you make such a decision. Also, there’s plenty of factors you need to consider before moving forward with this step.
This article will provide an overview of the real estate investment climate in the emirate, helping investors better understand the market
- Factors to consider before buying a Home
- What helps you take the decision?
Choosing a property location in Dubai helps you prioritize your needs in many ways. For example, if you’re moving-in to Dubai, your budget will fluctuate depending on many aspects, the lifestyle you’re planning to adapt, the neighborhood, whether you’re moving on your own or with your family. Are you planning to invest in it or it’s for yourself? Each of these factors will affect the amount of money you invest.
- Get a real estate consultant.
The right real estate agent will always present you with a range of choices, depending on your needs, budget, and preferences. Also, it will save a lot of your effort & time, assembling all the needed governmental documents, and most importantly, it will save your money by assisting you to find the best deal, especially if you’re new in the market or if you’re a first-time home buyer.
- Market status/Research.
If you’re new in Dubai, doing a deep market search before taking this step is crucial. Analyze market conditions, economic status, etc.
- Understand Dubai’s home-buying process
- Residence visa (For you & your family)
– Golden visa (10 years validity)
– Green visa (5 years validity)
– Investor visa (3 years validity)
- Mortgage Financing and Home Loan Options For Buying Property In Dubai. Expatriates living in the UAE often look forward to owning property in Dubai. If you do not have a big amount of cash and you wish to buy a house in Dubai without a down payment, you have many choices. You have an opportunity to find different mortgage financing facilities offered by several banks and financial institutions in the UAE.
- Maintenance Companies
That is a very important point you need to consider in Dubai. Due to Dubai weather, it is necessary to hire a maintenance company for quarterly checkups. Payment of utilities: water, electricity, gas. In the UAE, the most “difficult” period in terms of expenses is summer. During this time of the year, the owner of the property will pay more for utilities.
- A favorable tax environment.
Property owners do not pay taxes on land or property. In Dubai, real estate investors gain maximum profit without paying property tax or stamp duties.
As a conclusion, back to our question, is it worthy to buy a property in Dubai? Well, the answer is definitely yes! The real estate return on investment (ROI) in Dubai is one of the highest rates in the world. The average ROI on property in Dubai is in the high range of 9% and 6%, with some areas consistently offering even higher returns. Investors can benefit from the short term rentals, also from the big number of tourists as Dubai is a preferable tourism destination for most people.